Luxury Real Estate Marketing Tip: The Economics of Aligned Self Interests
In marketing luxury real estate it is important to understand how to create and execute the economics of aligned self interest. This strategy is one that takes all parties into account by understanding their points of views i.e. their self motivated interests. By understanding others' points of views (walking in their shoes) you can connect with them and create a new paradigm resulting in a viable and harmonious outcome for everyone involved. Here is an example of the economics of aligned self interests from the retail world.
If you have been in a large mall lately, you may have noticed an interesting kiosk/booth called “me’ality” with a slogan below it, “measured reality ™”. This booth as described by their literature is “a size matching station because one size fits nobody”. The technology in this booth is a safe scanning device that takes 200,000 measurements of an individual’s body (women in this instance). These measurements are translated into a list of stores (Gap, Levi, DKNY, and Ralph Lauren to name a few) which carry jeans that will fit your body and specifies the size and the cut which is perfect for you.
Whose bottom lines benefit here? The
malls have experienced additional traffic because of this kiosk.
Additional traffic translates into more sales for all the tenants in the
mall and that means fewer empty stores. (One of the tenants in the Oaks
Mall in Thousand Oaks, California, The Coffee Bean and Tea Leaf had a
notice on the booth giving away a $5.00 gift card for signing up with
me’ality.) The retailers are subscribing by the droves with me’ality,
and their list is growing daily. Me’ality has had national positive
media coverage. Retailers are reporting more sales and less returns
and exchanges. Customers are finding the perfect fit in jeans and are
telling friends about this time saving device.
Here is a real estate example. In our
commercial real estate practice, we were approached by an architectural
firm wanting to lease a building they would design in a particular
geographic area. We put out feelers in the brokerage community looking
for land that could be developed into a 3 story office building. One of
our favorite teams responded. They had a piece of land in escrow
contingent on the buyer (developer) finding a sizable tenant willing to
sign a long term lease for a 3 story office building. The fact that
our clients were a noted firm was a bonus to the developer. Everyone’s
economic self interest was served. Our architectural firm fulfilled
their desire to create the perfect building for themselves. The
developer had a piece of land that increased in value because of the
building and the income generated. And the brokers made a very nice
commission.
So next time you are negotiating or trying to fulfill wishes for a buyer/seller in marketing luxury real estate take a moment to examine their self motivated interest, and find out what is in it for them. Find a way to align all interests geared to the same goal…a successful transaction
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